Consumers Miss Out on Relief as Government Raises Petroleum Levy

Pakistani consumers have been denied fuel price relief after the federal government increased the petroleum levy on petrol and high-speed diesel, while keeping retail fuel prices unchanged for the next two weeks.

According to official sources, the levy on petrol has been raised by Rs4.62 per litre, while high-speed diesel (HSD) saw an increase of Re0.80 per litre. The decision was reported on Friday and took effect immediately.

Petrol and Diesel Levies Increased

The increase has pushed the total petroleum levy on petrol and High Octane Blending Component (HOBC) from Rs79.62 to Rs84.27 per litre.

For high-speed diesel, the levy has increased from Rs75.41 to Rs76.21 per litre.

In addition to the petroleum levy, the government continues to charge a Climate Support Levy (CSL) of Rs2.50 per litre on petrol, diesel and HOBC.

Other Fuel Charges Remain in Place

Consumers are also paying additional charges, including the Inland Freight Equalisation Margin (IFEM). This stands at Rs8.97 per litre on petrol and Rs7.25 per litre on diesel.

For other fuels, the petroleum levy remains:

• Kerosene oil: Rs20.36 per litre

• Light diesel oil: Rs15.84 per litre

These charges further increase the overall cost burden on consumers.

Fuel Prices Kept Unchanged

Despite the higher levy, the government has decided not to change fuel prices for the current fortnight.

According to a notification issued by the Petroleum Division on Thursday night, petrol will continue to sell at Rs253.17 per litre, while high-speed diesel will remain priced at Rs257.08 per litre until the end of January.

In the previous price review, the government had reduced petrol prices by Rs10.28 per litre and diesel by Rs8.57 per litre.

Impact on Households and Inflation

Petrol is widely used by commuters, especially those relying on motorcycles, rickshaws and small cars. Rising fuel costs directly affect middle- and lower-middle-income households.

High-speed diesel plays a key role in transport, agriculture and industry. It is used by trucks, buses, trains, tractors and tube wells. Economists say higher diesel costs are inflationary, as they raise transport charges and contribute to higher food prices, particularly vegetables.

Industry analysts say the latest move will help the government maintain revenue but leaves consumers under pressure, even as global oil prices remain relatively low.